The Mechanism of Artificial Intelligence's Impact on Green Innovation in Chinese Industrial Enterprises

Carbon neutrality in 2060 is an important goal in realizing sustainable development in China. As a technology of Fourth Industrial Revolution, artificial intelligence is expected to promote green innovation in Chinese industrial firms. In response to the explosive growth of related research, this study attempts to examine how AI promotes green innovation in Chinese industrial firms by exploring the role of contextual factors. Panel data of Chinese listed manufacturing firms are employed in this study, and two-way fixed-effects model and mediation analysis are applied. Results indicate that AI can enhance green innovation by improving human capital structures and resource allocation efficiency, and the effects are pronounced in eastern China and large firms. These findings broaden the understanding of AI's role in sustainable development. It also provides policy recommendations for utilizing AI to drive environmental transformation.